Break Even Analysis

The supra breakeven analysis of each variable displays the confederacy of the variables that result in a break-even position for the Beta find at ABC Corporation. For example, the 6% sales growth rate would result in a break-even for the formulate if the operating expenses grow at 8%. some other ratios atomic number 18 derived from sales and operating expenses so that their growth rates are also reflective of the life-sustaining rates below these rates, the break-even would be violated.The forecasts of the variables withdraw the estimates made by ABC Corporation for each of the variables in the mise en scene of market information and judgment. In this case, all of the value are above the life-sustaining value thus it has to be re-calculated whether the combination results in a break-even or not. For example, the operating expenses growth rate increased by 46. 7% while sales growth rate was up by and 14. 3%. The balancing factors have to re-evaluated in order to deduce whet her the break-even is chance upond or not.This can be done by adding up the values in the %change column assigning a positive to sales/ revenue enhancement increases and a negative to cost heads. b. Which variables are most critical to the triumph of the beta project? (2 points) There are two methods of judging the critical factors to the success of this project one would be to compare the critical values of the different variables while the other would be find the variances of each of the component changes in the values of different variables.Following the first method, it would lead to the conclusion that the unrefined profit margin is the most critical factor having a 28% critical value. Following the second method, the operating expenses would be the most critical variable. The justification for each of the methods stands valid in their grounds. However, for this project, it would be more worthy to state that the operating expenses is the most critical factor followed clos ely by the base sales for 2008 and then the gross profit margin. c. Why would it be helpful to know which variables are most critical to the success of the project?(5 points) Projects often fail when managers and controllers spend time and money on processes lotion variables that are of little importance. Understanding the critical factors of a project helps project managers to focus on the processes that are relatively more important and achieve targets that would satisfy the critical limits of the variables. Essentially speaking, critical variables should be known in order to make decisions as the project progresses and decide where and when to make changes that would come upon the critical variables (and how will it affect the